The financial statements of Zetar plc are presented in Appendix F. Instructions for accessing and using the company’s complete annual report, including the notes to its financial statements, are also provided in Appendix F.
Instructions
Use the company’s annual report to answer the following questions.
(a) According to the Operational Review of Financial Performance, what was one reason why the balance in receivables increased relative to the previous year?
(b) According to the notes to the financial statements, how are loans and receivables defined?
(c) Using the notes to the financial statements, what amount of trade receivables were written off (utilised) during 2011?
(d) Using information in the notes to the financial statements, determine what percentage the provision for impairment of receivables was as a percentage of total trade receivables for 2011 and 2010. How did the ratio change from 2010 to 2011, and what does this suggest about the company's receivables?